Uber poised to double investment in freight unit after making it independent
By Mark B. Solomon | August 8, 2018
Uber Technologies Inc.’s decision to operate its freight brokerage division, UberFreight, as a stand-alone business unit is part of a strategy to double the parent’s investment in the new unit over the next year, the ride-hailing company said.
Under the restructuring, which was announced late yesterday, San Francisco-based Uber Freight will no longer be part of the parent’s Advanced Technologies Group. In addition, Uber will close a deal to buy Otto Trucking, one of the two units that had been controlled by Otto, a company that Uber acquired in August 2016 for a reported $680 million.
The unit to be acquired by Uber develops technology to support logistics services for companies like Uber Freight, whose mobile app connects driver capacity to shippers’ loads. The other unit, called “Ottomoto,” provided technology to support autonomous truck operations. That unit was acquired in the deal reached two years ago.
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